Qualities of Good Businessman?

Answer:

Qualities of Good Businessman:

A well-managed business is generally a reflection of a person or persons who have inherent or acquired qualities of leadership and direction. So a businessman to succeed must be a well-balanced and full-fledged man of talent. He must have a consistent mind for clearness, steadiness and firmness in his dealings with others. Some of important and basic qualities of businessman are following:

1.     Business Ability:

For the success of any business it is essential that a businessman must possess the sounds knowledge of market, product, technological development, scientific .inventions, innovation, organization and business laws. It requires an ability to initiate, direct and control, and even more important, the capacity to win and hold the respect and loyalty of fellow workers. It permits the businessman to work efficiently for the prosperity of his business. This type of quality depends first on temperament and second on training.

2.     Good Appearance:

This is a prominent quality required in a businessman. It help him much to win the opinion of the public. Good appearance is a rare quality and depends on a combination of many other qualities of head and heart. It is the capacity of attracting and influencing other people without conscious effort. A businessman with sound personality can easily win the confidence of his prospect and convince him about his point of view.

3.     Spirit to Co-Operate:

This businessman shall be a good Co-operator, and so a good businessman. He must be able to compromise adjust, adapt, and be willing to admit that his judgment may on occasions be wrong. Besides he must be temperamentally fitted to exercise a divided authority.

4.     Well Balanced:

A businessman must be a well-balanced man of talent. He must have a consistent mind for clearness, steadiness and firmness in his dealings with others. He must never be prey to moods, by being of complacent temper today.

5.     Sincerity and Honesty:

A businessman should be sincere and honest in his business activities. His own and the firm’s reputation depends on honesty. This honesty and sincerity which goes with it are attributes of the businessman at his best. Honesty with him is not only the best policy but also the best practice.

6.     Enthusiasms:

The next quality without which no one should consider a profession as a I businessman, is enthusiasm for his activities, for an unsettled life, and for long hours and for the people who is going to meet. Then the knowledge of product, knowledge of the marketing conditions and knowledge of the prospect to enthusiasm and you have unbeatable combination.

7.     Dependability:

The successful businessman should have the capacity of dependability. He should use every effort to hold it constant and dependable, so that those who work under it know what to expect as it remains fluctuating from day today. It keeps him much to win the heart of both customers and workers.

8.     Courtesy:

Courtesy is to business what oil is to machinery. It costs nothing but wins a reputation. So businessman has to win the heart of everyone with his polite manners. Every one cannot know how may down is head before the polite and courteous businessman.

9.     Alertness:

A businessman must be alert to the opportunities surrounding his business. He must keep in touch with the world, and not keep himself to himself. He should move about and see what is going on for he has to estimate new wants and new inventions for creating fresh demands.

10.   Sociability:

Another notable quality of the businessman is ability to mix with anyone within a minute or two. He must get himself introduced to an unknown persons within a short time. Thus a businessman of sociable nature can easily win the confidence of many persons and much popularity among them.

11.   Financial Ability:

Finance is an important factor for successful operation of the business. Without adequate finance no business can smoothly run. So a businessman must possess good financial position. The larger the amount of capital, the larger is the size of business and larger the volume of profit.

12. Accuracy:

The businessman is that who knows what he is talking about, and what he mean, because he deals with a number of simple wants. Accurate actions depends upon accurate thinking. The goods businessman must be able to grasp his problems by treating them quantitatively.

13. Time Sense:

Besides quantity and the nature of his product, the businessman must appreciate time. He must always thinking in terms of time. Actions cannot be taken in complete isolation from each other. There is also a chain of actions, which must fit in with the rapidly changing desires of the ultimate consumer. This makes it vital to be able to visualize the various actions in their places in time. There are no hunches in business, but all actions depend upon figures and facts.The businessman who has given adequate attention of quality and time will always be ready to make the most of each opportunity as it arises, and to look ahead as far as he needs.

14. Energy:

A bountiful endowment of physical and nervous energy is another requisite without which other qualities are hardly of any value. As in any other activity so in business, infinite capacity to taking pains is essential. In addition to possessing an abundance of energy, he should possess forcefulness enough to put across his ideas and suggestions, which he believes to be right.

15. Character:

All talents are greatly enhanced in value when to them is added moral character, because this gives the promise of energy, loyalty and steady growth in ability and economy in supervision. Such a person, in the words of Professor Hocking, will “through his eye, through his voice, through his gestures, through the substance of what to say, through absorption in his work and belief in his mission infuse his own, state of mind into his men.” He will avoid any sort of double-dealing, either with his associates or with the rank and file. All false dealing is futile; and it is absolutely destructive of loyalty.

Definition of Business

Answer:

Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world.

Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.

All of us need food, clothing and shelter. We also have many other household requirements to be satisfied in our daily lives. We met these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are called as Businessman.

Definitions of Business:

Stephenson defines business as, "The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants."

According to Dicksee, "Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted."

Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods."

Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions.

Q.Scope of business?

Answer:

Introduction:

All of us live in families and depending on the income, we have different

Standards of living. We require various types of goods and services to satisfy

Our needs and wants. Some members in your family have to work to earn

And provide for the needs of the family. In modern times however, we need a large

Variety of goods and services to satisfy our needs and to raise our standard

Of living. On the one hand the supply of goods and services has led to

Various activities. On the other hand, activities of different types are undertaken

By people to earn sufficiently to fulfill their increasing wants.

Classification of Business Activities:

Business activities are undertaken to satisfy human wants by producing goods

Or rendering services.

We may classify business activities on the basis of functions into two broad

Categories:

01. Industry and

02. Commerce.

01. Industry: Industry is concerned with the production and processing of goods. This type of business units are called ‘industrial enterprises’ which produce

Consumer goods as well as machinery and equipment’s. On the other hand,

‘Commerce’ includes all those activities which are necessary for the storage

and distribution of goods. Such units are called ‘commercial enterprises’which include trading and service activities like transport, banking, insurance and warehousing.Let us examine the characteristics of industry and commerce.

Characteristics of Industry:

Industry means production of goods for sale by the application of human ormechanical power.

The main characteristics of industry are as follows:-

• Production is done by the application of human or mechanical power.

• It creates form utility to natural or partly processed goods.

• It is concerned with the production of both producer and consumer goods.

• Industrial activities are regulated by different laws.

• It involves continuous operation.

Types of Industries:Industry means production of goods for sale by the application of human or mechanical power.

Industries are divided into two broad categories:

(i) Primary industries

(ii) Secondary industries.

      i.        Primary industries: Primary industries include all those activities which are connected withextraction, producing and processing of natural resources. These industriesmay be further sub-divided into two types:

(a)  Extractive and (b) genetic.

A) Extractive Industries:

Extractive industries are concerned with the extraction of materials from the earth, sea and air such as mining, farming, fishing and huntingetc.

B) Genetic Industries:

Genetic industries include activities connected with rearing and breedingof animals and birds and growing plants. Reproduction and multiplication is the main activity in these industries, such as, agriculture, animalhusbandry, dairy, poultry, culture etc. Main products are milk, wool, butter, cheese, meat, egg, fish, seeds of plants, etc.

      i.        Secondary industries :may also be of two types:

(a) Manufacturing and(b) construction.

a)Manufacturing Industries: Industries engaged in the conversion of raw materials or semi-finishedproducts into finished product are called manufacturing industries.

b) Construction Industries: The activities of Construction industries include erection of buildings, bridges, roads, railways canals etc.

02. Commerce:Commerceis the sum total of all the activities connected with the placingof the product before the ultimate consumer. It provides the necessary link betweenthe producer and the consumer of goods.Commerce is defined ‘as activities involving the removal of hindrances in theprocess of exchange’. The main characteristics of commerce are as follows:

Cracteristics of Commerce:

(i) Commerce is the sum total of activities which facilitate the availability ofgoods to consumers from different producers.

(ii) It aims at ensuring proper distribution of goods.

(iii) It adds different type of utilities to the goods by making goods availableat the right time and the right place to the people who need them.

(iv) It includes trade and auxiliary to trade.

01.    Trade:

Classification of Trade:

Trade may be classified into (i) Home Trade or Internal Trade and (ii) Foreign

Trade or External Trade.

i) Home Trade:

Home Trade means trade carried on within the boundaries of a country.

It may be divided into two types (a) Wholesale Trade and (b) Retail Trade

(a) Wholesale Trade: Wholesale trade involves buying goods fromproducers and selling them in small quantities to retailers

(b) Retail Trade: A retail trade consists of selling goods directlyto the consumers in small quantities. A retailer usually purchases goods from wholesalers or manufacturers and deals in a varietyof goods of different manufacturers.

ii) External Trade:

External trade refers to trade between two countries. It implies buyingand selling of goods by traders of two different countries. Externaltrade involves (a) Export and (b) Import.

a) Export:Export is concerned with the sale of goods to foreign countries.

b) Import: Importtrade relates to the purchasing of goods from other countries.

02. Transport:

It is one of the most important auxiliaries to trade. Transportation helpstrade by facilitating the movement of goods and passengers from one placeto another. Transport creates ‘place utility’ of the goods and remove the problemof distance.

03. Communication:

Now-a-days it is not possible to have business without communication.Communication implies transmission of information, ideas, opinions, etc.between two or more persons. Communication may be of two types - (i)internal and (ii) external.

04.Banking and Finance:

Banking provides safe, efficient and convenient mode of payment for goods in inland trade as well as in foreign trade. Banking helps business firms to overcome the problem of finance by lending money as and when required. Banks accept deposits and lend money. Loans are granted through over-draft, cash credit, loans and advances, discounting of bills. Other services of banks include collection of payments on cheques, bills, drafts etc., sending money from one place to another, buying and selling securities, payment of insurance premium, issuing travellers cheques, providing locker system, and providing information on credit worhtiness.

05. Warehousing:

Warehousing refers to storage of goods which are generally produced ona large scale in anticipation of demand. Goods have to be stored for sometime before transportation by manufacturers, wholesalers and retailers.Thus warehousing creates ‘time utility’.

06. Insurance:

Insurance occupies a prominent and valuable place as an aid to business andcommerce. Insurance provides security against risks. It makes trade andbusiness secure by making provision against all probable losses. Insurance isbased on the principle of ‘pooling of risks’. Insurance helps the businessman toconduct his business with confidence and peace of mind.

There are two major types of insurance coverage –

(i) Insurance of life of people and

(ii) Insurance of property.